LeBron Looks To Conquer The World

Kurt Badenhausen
,
Forbes Staff
I cover sports business with rare dips into b-schools, local economies

LeBron James has been vilified endlessly for his “Decision” last summer to abandon the Ohio region that made him a basketball prodigy (he grew up in Akron and was drafted by the Cleveland Cavaliers first overall in 2003). In the wake of his nationally-televised performance, his positive Q score plummeted 41% while his negative number soared 77%. His former boss, Cavs owner Dan Gilbert, labeled the departure a “cowardly betrayal” and “heartless and callous” in an open letter to fans.

But if any of this was bad for business, the numbers that matter most (the ones behind dollar signs) don’t show it. Like Tiger Woods, another pro athlete with a press problem, James lands in the top ten of our Celebrity 100 this year because, like him or not, he’s the center of the NBA universe and has the most lucrative portfolio of endorsement deals.

“I came to Miami because I really wanted to be a part of something bigger than me, where everyone is working together to achieve the ultimate goal,” says James. It’s a well-worn quote and it’s obviously true. In Miami, paired with All-Stars Dwyane Wade and Chris Bosh, he stands a better chance of winning than he did back in his hometown. But The Decision was about more than just championships. It was about leveraging those titles with business deals around the globe.

James has been taking steps towards global icon status since he first appeared on the cover of Sports Illustrated in 2002 as a high school junior with the tag line “The Chosen One”. He entered the NBA in 2003, won two MVP trophies and led the Cavaliers to the NBA’s best record in back-to-back seasons before leaving for the Miami Heat (the Cavs had the league’s second worst record this past season without James).

His endorsement lineup is already the envy of the league, a prestige portfolio including Nike, Coca-Cola, McDonald’s, State Farm and Upper Deck. His jersey was the NBA’s best seller this season for the first time in seven years. It was the best year yet for his signature Nike shoe according to Matt Powell, an analyst with SportsOneSource that tracks sales in the sports apparel market. “Styling has been spot on,” says Powell. James earned $48 million over the past 12-months through endorsements and his Heat contract. He ranks tenth on our Celebrity 100 list, his highest ranking ever.

In April James aligned his LRMR Innovative Marketing & Branding company with Fenway Sports Group to manage his business deals (subsidiary Fenway Sports Management will market James). FSG owns a treasure chest of elite sports properties including: the Boston Red Sox in baseball, Roush Fenway Racing in Nascar, regional sports network NESN—and English soccer club Liverpool.